RWA (Real-World Assets) refers to tangible or intangible assets in the real world, such as real estate, commodities, bonds, equity, bank deposits, etc., which are usually used as financial products or investment tools. In the field of blockchain and cryptocurrency, RWA refers to the process of digitizing these traditional assets through blockchain technology to form asset tokenization.
History of RWA
Early: asset securitization and traditional finance The concept of asset securitization originated in the 1970s, mainly used to convert certain illiquid assets (such as real estate, accounts receivable, etc.) into securities and raise funds through capital markets. Although these technologies have been developed in traditional finance for decades, their application is usually limited to financial institutions and lacks decentralized characteristics.
Introduction of blockchain technology (after 2017) With the development of blockchain technology, especially the popularity of Ethereum smart contracts, the digitization process of RWA has begun to accelerate. Through NFT (non-fungible tokens) and tokenized assets, RWA began to enter the world of blockchain.
2017: Blockchain projects such as Republic and Polymath proposed the concept of tokenization, aiming to convert traditional assets (such as real estate) into tradable digital assets through tokenization. 2018: Blockchain platform Tether launched a stablecoin based on US dollar reserves. Although it is not completely RWA, it marks the initial formation of the combination of digital assets and real assets. 3. Entering the mainstream market (2020-2022) Against the background of the rapid development of decentralized finance (DeFi), the tokenization and digitization of RWA began to attract more attention. Projects represented by MakerDAO began to try to combine traditional financial assets (such as bonds, loans, etc.) with cryptocurrencies through smart contracts, broadening the scope of application of DeFi.
MakerDAO launched the DAI stablecoin and tried to introduce RWA as collateral, which promoted the application of RWA in DeFi. Platforms such as RealT began to tokenize real estate assets, allowing investors to invest in real estate through blockchain technology. 4. Cross-border integration and innovation stage (2023 and beyond) In recent years, the digitization of RWA has gradually become a hot area in DeFi and blockchain, and more and more traditional financial institutions have begun to participate. Blockchain projects not only focus on the tokenization of financial assets, but also begin to expand into a wider range of fields, including:
Tokenization of Real Estate: Real estate tokenization has become one of the core areas of RWA application. Platforms such as RealT and Reitfi are allowing investors to indirectly own real estate rights by purchasing tokens. NFT combined with RWA: NFT, as a unique digital asset, is also used to represent the ownership of physical assets such as artworks and collectibles. RWA as a component of DeFi: More and more DeFi platforms are trying to introduce RWA as collateral for lending or liquidity provision.
